The MERCOSUR-Mexico Economic Complementation Agreement (ACE No 54) was signed during the MERCOSUR Presidential Summit that took place on 5 July 2002 in Buenos Aires, Argentina. The agreement establishes a legal framework for trade relations and sets the basis for periodic negotiations towards a free trade agreement.

The Agreement covers negotiations between the MERCOSUR bloc and Mexico, including the Mexico-MERCOSUR agreement on the auto sector, as well as bilateral negotiations between individual MERCOSUR countries -- Argentina, Brazil, Paraguay and Uruguay - and Mexico.

On the basis of this agreement, Mexico has concluded a free trade agreement with Uruguay and is in the process of extending the scope of Economic Complementation Agreement No 6 with Argentina and Economic Complementation Agreement No 53 with Brazil.

In July 2004, at the XXVI meeting of MERCOSUR's Common Market Council in Puerto Iguazú, MERCOSUR members agreed to initiate negotiations towards extending ACE 54 towards a free trade agreements. In this respect, the MERCOSUR Heads of State issued a Joint Communication signalling that Mexico would become an associate member of MERCOSUR once the free trade agreement is concluded. MERCOSUR countries and Mexico held their first negotaitions towards a free trade agreement in Asunción, Paraguay in May 2005.

Documents relating to the negotiations
20 May 2005	Asunción, Paraguay. I Negotiating meeting between the MERCOSUR States Parties and the United Mexican States: Joint Communiqué
08 July 2004	Puerto Iguazú, Argentina. MERCOSUR Heads of State: Joint Communiqué
05 July 2002	Mexico and MERCOSUR sign trade agreement ( Economic Complementation Agreement 54)
Source: Embajada de México en Uruguay; Secretaría de Economía de México

The agreement came into force between Argentina, Brazil, Mexico, Paraguay and Uruguay on 5 January 2006, 30 days after all Parties communicated to the General Secretariat of the ALADI compliance with their internal requirements.The agreement will continue to be in force until it is substituted by a free trade agreement between MERCOSUR and Mexico.

Legislation to implement the agreement in each of the countries that have completed their procedures is as follows:

Argentina: Note C.R. N° 52/03 of 18 June 2003 (CR/di 1575.3).
Brasil: Note N° 94 of 6 June 2003- Decree N° 4.598 (CR/di 1572.2).
México: Note N° 81/03 of 13 May 2003 (CR/di 1575.1).
Paraguay: Note N° 215 of 12 May 2005 - Decree N° 6643 (CR/di 2151).
Uruguay: Note N° 068/03 0f 21 February 2003- Decree 663/85 (CR/di 1575).

Source: Secretaría General de la Asociación Latinoamericana de Integración (ALADI)

• Embajada de México en Uruguay
• Secretaría de Economía de México
• Secretaría General de la Asociación Latinoamericana de Integración (ALADI)